Rural Market Regulation and Legislation in South Australia . Rural Market Regulation and Legislation in South Australia Prepared for the SA History of Agriculture Group Venton Cook, B Ag Econ, M Sc1 September 2021 Contents Venton Cook, former PIRSA agricultural economist specialising in farm business management 1962 to 2002. 1 1 Rural Market Regulation and Legislation in South Australia Section A Overview Executive Summary Introduction 3 5 The UK Parliament and S.A. Legislative Heritage 6 The Economic Environment and Marketing Policy 8 A Review of Marketing Policy from the 1960’s to the 2000’s 11 The Evolution of S A Agricultural Legislation and Regulation 14          The General Situation Early S A Legislation Rail Transport Exports and Government Intervention 20 th Century Marketing Legislation Impacts of Manufacturing Marketing Arrangements Soldier Settlement following WW1 and WW2 Agricultural Co-operatives 15 16 16 17 17 18 19 20 22 Section B Industry Market Legislation Marketing Legislation from the 1920’s  Dried Fruits  Canned Fruit  Dairy Marketing Legislation from the 1930’s  Margarine  Fruit and Vegetables  Citrus Marketing Legislation following WW2  Potatoes  Honey  Wheat  Barley  Eggs  Wine Grapes  Meat  Wool Conclusion 26 31 35 38 41 43 46 48 51 54 56 59 61 63 66 Executive Summary 2 Rural Market Regulation and Legislation in South Australia South Australian and Australian governments have an interesting history of market intervention in agriculture which has involved a wide variety of mechanisms and purposes. Measures taken were generally based on the needs of individual industries and producers rather than on those of the broader community. The paper traces the rise and fall of marketing regulation in agriculture, in response to economic, technological, social, and political conditions. It makes particular reference to South Australia, although much of it applies to other States. The paper identifies major events which were the drivers of market intervention, including the establishment of organised marketing; it refers to second reading speeches (which often provide explanation and justification for proposed measures) and to the records and recollections of individuals involved at the time. In S A, legislative measures commenced from early settlement when the need was to feed the fledging nation and then to foster exports. Regulations at this time were mainly to assist production. This prevailed through most of the 19 th century. In post- federation Australia, as S A grew, there was a need to encourage agriculture as a means to settling growers on the land, to develop exports and to meet the demands of a growing population. Most of the marketing legislation in the 20 th century was under the banner of “orderly marketing” at State and Commonwealth level. Major events such as WW1, the Depression and WW2 created both the demand for, and the need to provide, protection for agricultural industries including legislated marketing. The period from early 1900s until the middle of the 20 th century saw the establishment of a large number of marketing schemes. Some had a specific purpose to limit production by supply management, such as for the wheat industry (wheat quotas). Most marketing schemes were to ensure more stable and reasonable returns to producers, such as for wool and wine grapes, or as with dried vine fruits to guarantee product quality. Although industry and marketing authorities were cognisant for the need for promotion and better product grading to meet market needs, that was usually a secondary consideration. Whilst these marketing arrangements sometimes achieved their desired objective, they also had unintended consequences such as encouraging overproduction, misallocating resources such as capital and water, and hindering rural adjustment. 3 Rural Market Regulation and Legislation in South Australia This period also saw the rise of producer-based marketing cooperatives, usually centred around facilities such as wineries, canneries or other fruit packing and processing. Increased production from soldier settler’s farms increased the pressure for organised marketing. The influence of politics was strong as rural based parties sought to further the interests of their constituents in what was commonly known as a period of agrarian socialism. Powerful grower organisations also pushed hard for legislated marketing schemes. But all of this began t